The TLT and BIL funds each raised $13 billion this year.
As the Federal Reserve’s aggressive tightening raises the risk of a recession every day and ETF investors pour billions of dollars into funds that track both the short and long ends of the yield curve, Wall Street units rise in anticipation of what the future holds for the battered world of Treasury bonds.
Long-term debt may benefit if the Fed’s aggressiveness subsides.
With inflation and escalating indicators of economic problems, such as erratic credit and real estate markets, it is difficult to make a clear prediction about the direction that Treasury yields will take.
Long-term bonds, which stand to gain if the Fed lowers rates in the event of a recession, may be put at risk by some traders.
The difference between the influx of products through 2022 and just $49 million illustrates how divided fixed-income investors are at the moment regarding duration or interest rate risk.